Indian benchmarks are likely to open with losses on Wednesday, following the decline in global equities as investors remained wary of Covid-19 cases in China while awaiting a speech from Federal Reserve Chair Jerome Powell later in the day.
At 8:10 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — eased 0.05% to 18,749.5.
Asian stocks followed U.S. equities lower. Shares fell in Japan, South Korea and Australia while futures contracts for Hong Kong slid, indicating a pause in the optimism that drove a gauge of the region’s shares higher on Tuesday. The weakness in Japan followed data showing a sharper-than-expected decrease in industrial production.
U.S. stocks dropped, with largest technology companies in the world leading losses. S&P 500 declined 0.4%, while the tech-heavy Nasdaq fell 0.7%. Yield on 10-year Treasury notes rose four basis points to 3.72%.
Oil was up 1.2% after shedding gains on reports that OPEC+ will maintain its output. Gold futures rose 0.5%, while Bitcoin increased 1.1% to trade near the $16,400-level.
On Tuesday, Indian benchmark indices Sensex and Nifty continued their journey upwards for the sixth session in a row and closed at fresh new highs. Gains in FMCG stocks led the rally as domestic markets favoured the bulls.
The rupee reversed its gains from the day to close lower against the U.S. dollar as rising oil prices took a toll on the forex market.